You are entitled to take out a DHOAS home loan with another party, or multiple parties, as long as you hold, either alone or with your partner, a 50% or greater interest in the property.

There are several possible scenarios for multiparty loans:

A couple is party to a shared loan, and both of the partners are entitled to DHOAS subsidy.

A couple is party to a shared loan, but only one partner is DHOAS eligible.

Two DHOAS-eligible borrowers share a loan and are not partners.

A DHOAS-eligible borrower has a shared loan with someone who is not their partner.

A DHOAS-eligible borrower has a shared loan with their partner AND someone who is not their partner.

These scenarios are explained in detail below. At any time that you have a non-partner as a co-borrower, you will be entitled to subsidy on only 50% of your total loan amount.

Change in relationship status

If you separate, you may continue to hold a joint DHOAS home loan with your ex-partner. However, you will be deemed liable for only 50% of the loan and your subsidy payments will be adjusted accordingly.

If you want to be deemed liable for 100% of the home loan, so you can receive DHOAS subsidy on the full loan balance, you will need to remove from the loan any non-partners as co-borrowers. Please note that refinancing the loan to remove your partner's name is a subsidy-ceasing event. You will need to reapply for DHOAS to reestablish subsidy payments.

You will have up to 12 months from the date of your separation to make this change to your home loan. If you elect to retain a shared loan, your subsidy payments will be amended to reflect a 50% interest only in the property, as shared with your ex-partner as a co-borrower.

Once you have finalised your preferred arrangements for the DHOAS home loan, either keeping your ex-partner on the loan or removing them as a co-borrower, you need to advise DVA using a Change of Circumstances form.

It is important to do this as soon as possible so that the amount you are subsidised can be adjusted accordingly. A delay in advising us of your decision regarding the parties to your subsidised loan could cause you to be overpaid subsidy (if your interest in the loan drops to 50% because you have a non-partner, co-borrower). Any overpaid subsidy needs to be repaid.

Scenario 1: Both partners entitled to DHOAS

If both of you are eligible for DHOAS, you can take out a joint home loan and each receive a subsidy.

The benefit of you both using your DHOAS entitlement on a joint loan is that you increase your subsidised loan limit - the portion of your home loan that can attract a subsidy.

You will each be deemed to be liable for 50% of the joint home loan and you will each receive an equal subsidy payment amount, even where your individual eligible tier levels are different.

To calculate your entitlement, we first total your combined subsidised loan limits under your respective eligible tiers. We then calculate the total monthly subsidy that is payable on your joint subsidised loan limit.

Each member will receive a payment that is half the total monthly subsidy payable on their joint subsidised loan limit. This may result in one party receiving more than they would under their individual tier, and the other receiving less.

One partner is eligible under tier 1, which has a subsidised loan limit of $280,127 and a maximum monthly subsidy of $234, and the other is eligible under tier 2, which has a subsidised loan limit of $420,190 and a maximum monthly subsidy of $352 (as at September 2017).

If they take out a joint home loan that is equal to or greater than their combined subsidised loan limit of $700,317, the monthly subsidy payable on the combined loan limit will be $234 + $352 which is $586 (as at September 2017).

Each partner will receive 50% of $586, which is $293 (rounded down). This means the partner who is eligible under tier 1 receives more, and the partner eligible under tier 2 receives less.

Example 2: Joint loan that is less than the combined subsidised loan limit

One partner is eligible under tier 1, which has a subsidised loan limit of $280,127 and the other is eligible under tier 2, which has a subsidised loan limit of $420,190.

They take out a joint home loan of $400,000, which is less than their maximum, combined subsidised loan limit of $700,317.

Their subsidy is calculated on $400,000, the full amount of their home loan, all of which attracts a DHOAS subsidy. The subsidy amount payable on $400,000 is $335 (as at September 2017).

Each partner will receive a monthly subsidy of $167 (rounded down).

Please note: If your joint home loan amount is not much more than the subsidised loan limit of just one of the partner's tiers, you may wish to consider using the DHOAS entitlement of only one partner on the loan, and preserving the entitlement of the other partner for another time. Your choice depends on your personal circumstances.

Scenario 2: One partner is DHOAS eligible

Where only one partner is a subsidised borrower on a couple's shared loan, then the subsidised borrower will be taken to be liable for the whole loan and will be able to use the full value of their subsidised loan limit as if they were a sole borrower.

Example

You're eligible under tier 3, and can receive a DHOAS subsidy on a subsidised loan limit of $560,254.

You take out a $600,000 home loan with your partner, who is not eligible under DHOAS.

For the purpose of DHOAS, you are deemed to be liable for the $600,000 loan, which is greater than your loan limit of $560,254.

This means you can receive the maximum subsidy payable on the loan, which is $469 (as at September 2017).

Scenario 3: Two eligible non-partner borrowers

Where a subsidised borrower has a shared loan with another eligible person who is not their partner, in which both parties are jointly liable, then the subsidised borrower will be taken to be liable for half the loan. This is the capital amount against which the subsidised borrower's loan limit is compared.

This prevents the DHOAS subsidy that is paid to the subsidised borrower being used for the benefit of a person who is not entitled or who has a separate entitlement in his or her own right.

Where two subsidised borrowers who are not partners share the same home loan, both subsidised borrowers must each own 50% of the property. Each subsidised borrower is required to meet the subsidy conditions outlined in Step 5.

Example

You and another person that is also eligible for DHOAS, who is not your partner, take out a $600,000 home loan together for the same property.

Each eligible person will be entitled to subsidy on 50% of the loan amount, regardless of their tier level and subsidised loan limit. This means each eligible member on the loan will be entitled to subsidy on a maximum of $300,000.

You are eligible for DHOAS under tier 1. Your tier 1 subsidised loan limit is $280,127. As this is less than your half of the loan amount, you will receive the subsidy on your tier 1 loan limit, which has a maximum monthly subsidy payment value of approximately $234 (as at September 2017).

The other person is eligible for DHOAS under tier 3. The tier 3 subsidised loan limit is $560,254. As their portion of the loan is $300,000, and this is less than their tier 3 loan limit, they will be subsidised on $300,000 and a monthly subsidy payment of approximately $251 (as at September 2017).

Scenario 4: Eligible borrower with non-partner

Where a subsidised borrower has a shared loan with a person who is not their partner, in which both parties are jointly liable, then the subsidised borrower will be taken to be liable for half the loan. This is the capital amount against which the subsidised borrower's loan limit is compared.

This prevents the DHOAS subsidy that is paid to the subsidised borrower being used for the benefit of a person who is not entitled or who has a separate entitlement in his or her own right.

The arrangement applies even if the other borrower to the DHOAS recipient owns less than 50% of the property, however the subsidised borrower must own at least 50% of the property.

Example

You are eligible for DHOAS under tier 1. You take out a $600,000 loan with a parent.

The amount of the home loan that you will be deemed to be liable for is $300,000.

Your tier 1 subsidised loan limit is $280,127, for which you will receive the maximum monthly subsidy payment of $234 (as at September 2017).

Scenario 5: Couple take out home loan with other co-borrower

You and your partner can take out a DHOAS home loan with another co-borrower as long as your share, together, in the property is at least 50%.

In this scenario, as a couple you are deemed to be liable for 50% of the home loan and your subsidy is calculated on this share.

If you and your partner are both eligible for DHOAS, as a couple you receive subsidy on the 50% of the loan that you're deemed liable for. From this 50% share, your individual subsidy payments will be calculated. For information on how your subsidy is calculated as DHOAS-eligible partners, please see Scenario 1: Both partners entitled to DHOAS.